How to Quantify Value in Sales and Close More Deals
Quantifying value is a vital step in the sales cycle. It proves that salespeople have a developed understanding of a prospect’s business issues and the impact of the proposed solutions — critical ingredients to building buyer confidence and helping prospects justify the purchase. Let’s look at a four-step formula for how to quantify value in sales.
Creating customer value
Creating true customer value means your buyer feels the benefits of your product or solution outweigh the cost of the investment. The purpose of centering your sales technique around value instead of product features means that sales professionals can create a loyal customer base that views the salesperson as a trusted resource in the industry.
For sales professionals, creating customer value can look drastically different depending on the product or industry. For some buyers, a unique product feature or excellent customer service can bring enough value to persuade them to act. For other buyers, the added resources and industry knowledge of the sales professional can be a high value add to their business.
The key is having a deep understanding of your customer’s problems so that the way you present the product or solution feels tailored to their needs. A good way to implement this idea is to treat every customer interaction as an opportunity to add value. As you get to know your buyer, focus on what you can add to the interaction instead of narrowing in on the sale. When you need to follow up with them, think about resources you can share to make their job easier and help them think through solving their most pressing business issues.
Why is customer value important? Not only does it lead to more satisfied, long-term partnerships between the sales professionals and the buyer, but it ensures that the customer’s needs are being met and the product is a good fit for the buyer. Focusing on customer value–and the cost of inaction–can create a sense of urgency for the buyer to act.
What is value selling?
Value selling is a sales methodology that focuses on the buyer and the value they receive by doing business with you. To do this, salespeople must take their company’s value proposition – the general promise it makes to the market – and quantity it at the individual level. They must effectively demonstrate exactly how much value their business can bring the buyer on a professional and personal level. Moreover, that value must be enough to motivate the buyer to change.
The key to value selling is quantifying the exact ROI a buyer can expect from the investment in your product or service. Here are four steps you can take to quantify value in sales:
How to quantify value in sales
Build trust with the buyer
Make sure you have a holistic view of the customer’s concerns and how the solution is a great fit for your potential buyer. Quantified value will only close sales if your buyer trusts that what you’re calculating for them is accurate and reflects the nuances of their business. Ask your buyer high-value questions to determine the exact nature of the business issue and how this connects to key business drivers. It’s important to determine how you’ll add value to the organization and the individual. This step is critical to ensure you have built trust and buyer confidence.
Determine crucial metrics
Based on sales conversations with your buyer, you should know what positive business outcomes your potential buyer can expect with your solution. Calculating how much time or money a business can save is a great way to start, but don’t forget about other benefits like improved customer satisfaction, business growth or positive business reputation. Ultimately, you must ensure you are solving problems worth solving–otherwise, the opportunity is likely to end in no-decision.
Calculate the outcome
Start with a solid understanding of your buyer’s current solution and calculate the specific ROI from your solution. Not only must the ROI be built on a solid foundation, you must also ensure that the buyer believes it–after all, value is always determined from the prospect’s point of view. And don’t forget to calculate how much a buyer stands to lose if they don’t take the desired action. Even if you have the ideal solution, you’re still fighting the status quo.
Craft a compelling customer story and a mutual plan
After you quantify the value of your solution, make sure you craft a compelling customer journey explaining how your product will impact the buyer and organization for the better. Then work with your buyer to detail a mutual plan that contains all of the milestones and activities needed for them to receive the agreed upon value of your product/service — and be sure to put it in writing.
Quantifying customer value ultimately helps your buyer see why your product or solution is superior. By focusing on customer value, sales professionals reap the benefits of happy, returning customers and closing more deals.